Internationalization, Entrepreneurship and the Smaller Firm

Internationalization, Entrepreneurship and the Smaller Firm

Evidence from Around the World

Edited by Marian V. Jones, Pavlos Dimitratos, Margaret Fletcher and Stephen Young

This forward-looking volume contains state-of-the-art analysis of the current research themes and challenges influencing the internationalization of SMEs.

Chapter 12: Local Bridging Ties and New Venture Internationalization: Exploratory Studies in Bangalore and Cambridge

Shameen Prashantham and Girish Balachandran

Subjects: business and management, entrepreneurship, international business


Shameen Prashantham and Girish Balachandran SUMMARY The research question addressed here is: How does the nature of local embeddedness of network relationships influence new venture internationalization? The authors distinguish between the spatial embeddedness of ties as dispersed or concentrated. They explore the differential effects of local bridging tie embeddedness on new venture internationalization, based on a case study pertaining to each spatial embeddedness type. The cases concern a Bangalore (India) start-up engaged in spatially dispersed joint activity with Microsoft India, within the Bangalore software cluster; and a Cambridge (UK) venture with spatially concentrated links to a local venture capital (VC) firm, located within the Cambridge electronics cluster. The authors posit that the spatial embeddedness of local ties could have differential effects on the internationalization of new ventures in terms of: (1) differing trajectories of opportunity creation; (2) distinct knowledge-bases that are accessed; and (3) varying potential constraining effects. An implication is the utility of a holistic approach whereby internationalizing new ventures cultivate and utilize both forms of network relationships. Future research directions highlighted include the development of organizational capabilities by international new ventures (INVs) through interacting with local bridging ties such as multinational corporation (MNC) subsidiaries and VC firms; and the influence of local bridging ties on internationalization routines. 166 Local bridging ties and new venture internationalization 167 INTRODUCTION A significant strand in the international entrepreneurship literature focuses on the role of network relationships in facilitating and accelerating new venture internationalization (Oviatt and McDougall, 2005; Zahra, 2005). This literature thus...

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